GET DAILY SIGNALSUnder Armour (UAA) Reports Mixed Second Quarter Results as Turnaround Progresses
Key Takeaways
- Under Armour reported second quarter fiscal 2027 revenue of $1.24 billion, down roughly 7% year over year and slightly ahead of consensus estimates.
- Adjusted earnings per share (EPS) came in at breakeven, narrowly beating the expected loss of $0.01 per share.
- Gross margin slipped 30 basis points to 47.0%, pressured by foreign exchange, channel and regional mix, and pricing headwinds.
- Management cut its full-year gross margin growth outlook to 170–220 basis points from a prior 220–270 basis points, citing higher fuel and freight costs and Middle East supply-chain disruptions.
- Third quarter guidance was weaker than expected, projecting a revenue decline of 8% to 9% and an adjusted loss per share of $0.01 to $0.03.
- Shares fell in premarket and early trading as investors weighed the disappointing holiday-quarter forecast against a turnaround still in progress.
- For more detail on Under Armour's Major News, Today's Price Move, Price Targets, and Forecast, explore Tickeron's dedicated pages for deeper coverage.
Why These Results Matter in the Broader Turnaround
Under Armour's second quarter fiscal 2027 results, covering the three months ended September 30, 2026, arrived at a key juncture in the company's ongoing transformation. After periods of inconsistent results, CEO Kevin Plank and the team have emphasized operational streamlining, product refinement, and brand repositioning. This quarter provides a useful checkpoint on whether those steps are yielding tangible financial improvements. Revenue trends in North America, margin resilience, and handling of external cost pressures stood out as focal points for investors, especially with competitors discounting heavily and consumer spending remaining soft.
Breaking Down the Reported Figures
Under Armour reported second quarter fiscal 2027 revenue of $1.24 billion, a decline of 6.9% year over year, or 7.3% in constant currency, coming in modestly above analyst expectations. Adjusted EPS landed at breakeven ($0.00), better than the consensus forecast of a $0.01 per-share loss and down from $0.04 per share in the prior-year quarter. Adjusted operating income dropped to $24.9 million from $53.4 million a year earlier, while the adjusted net loss reached $2.1 million compared with net income of $15.3 million previously. I also checked this using Tickeron’s AI Screener to place the results in a sector context.
Gross margin narrowed 30 basis points to 47.0%, driven by unfavorable foreign exchange, channel and regional mix shifts, and pricing pressure, though partly offset by supply-chain gains and a better product mix. North America revenue and International revenue each fell 7%, reaching $737 million and $509 million. Within international markets, EMEA and Asia-Pacific declined about 9% each, while Latin America rose 3%. Wholesale revenue dropped 6% to $725 million and direct-to-consumer revenue declined 8% to $494 million. Apparel revenue eased 6% to $880 million, footwear fell 11% to $234 million, and accessories slipped 7% to $105 million.
Market Reaction and Investor Sentiment
Investor response to the results turned negative, with shares dropping sharply in premarket trading before some stabilization during the session. The move reflected disappointment with the third quarter outlook, which missed expectations. Management guided for an 8% to 9% revenue decline in the holiday quarter, versus analyst projections of around a 4% drop, and an adjusted loss per share of $0.01 to $0.03, against consensus expectations of a $0.04 profit. The company also increased its estimated Middle East conflict impact to roughly $45 million from $35 million and lowered full-year gross margin growth guidance, indicating that external cost pressures are proving more persistent than anticipated.
Forward Outlook and Factors to Watch
Looking ahead, attention will center on whether Under Armour can stabilize its largest market, North America. Management noted that a low double-digit revenue decline there remains possible in the third quarter, with potential for a larger full-year shortfall if traffic and macroeconomic conditions worsen. Reversing this trajectory stays central to the turnaround narrative.
Supply-chain and cost dynamics will remain important. Higher fuel and freight costs linked to the Middle East situation, along with unfavorable foreign exchange, are expected to continue. Under Armour intends to offset these through pricing actions, reduced discounting, and improved channel and product mix. Its revised full-year gross margin outlook of 170 to 220 basis points of improvement, down from 220 to 270 basis points, captures this adjustment.
Investors should also track completion of the restructuring program. Under Armour has recorded about $280 million in restructuring and transformation costs so far, with total costs expected near $305 million and completion targeted by December 31, 2026. For fiscal 2027, the company still anticipates a mid-single-digit revenue decline, adjusted diluted EPS of $0.08 to $0.12, and adjusted operating income of $140 million to $160 million. Delivery on these targets amid softer demand and rising costs will influence sentiment going forward.
Using AI Tools to Refine My Analysis
In my day-to-day research, I frequently rely on Tickeron’s AI Screener to scan for comparable setups in the consumer apparel sector and surface technical signals that complement traditional fundamental work. The tool helps me quickly filter turnaround candidates and monitor sector trends without spending hours on manual screens, which adds efficiency when evaluating names like Under Armour alongside peers.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for UAA turns positive, indicating new upward trend
UAA saw its Momentum Indicator move above the 0 level on October 29, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In 68 of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for UAA just turned positive on October 01, 2026. Looking at past instances where UAA's MACD turned positive, the stock continued to rise in 34 of 45 cases over the following month. The odds of a continued upward trend are 76%.
UAA moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for UAA crossed bullishly above the 50-day moving average on November 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 75%.
Following a +10.12% 3-day Advance, the price is estimated to grow further. Considering data from situations where UAA advanced for three days, in 185 of 277 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
The Aroon Indicator entered an Uptrend today. In 155 of 213 cases where UAA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 73%.
Bearish Trend Analysis
The 10-day RSI Indicator for UAA moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In 25 of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at 83%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UAA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
UAA broke above its upper Bollinger Band on November 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 31 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.588) is normal, around the industry mean (2.940). P/E Ratio (-4.591) is within average values for comparable stocks, (13.961). Projected Growth (PEG Ratio) (1.083) is also within normal values, averaging (0.686). Dividend Yield (0.000) settles around the average of (0.328) among similar stocks. P/S Ratio (0.434) is also within normal values, averaging (0.827).
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. UAA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 98 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. UAA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a designer of branded performance products for men, women and youth
Industry ApparelFootwear
Advertisement